1Q11 results and comments

Transcription

1 INVESTOR & ANALYST UPDATE 12 th May Q11 results and comments 1

2 Disclaimer The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Banpu plc. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. 2

3 1. Focus: Centennial strategic plan 2. Coal divisions 3. Coal market 4. Power division 5. Financial summary Appendices 3

4 1. Focus: Centennial strategic plan 4

5 Introduction 1989 Centennial founded by Robert Cameron Listed on Australian Securities Exchange HISTORICAL PERSPECTIVE 1998 Acquired Clarence (85%) Acquired Powercoal assets from the NSW government 2002 Acquired Springvale (50%) 2005 Opened Mandalong Elevated to S&P/ ASX 100 Index 2007 Divested Anvil Hill and Austral Banpu takeover 2011 Opened Airly Inglenook (exploration area) Neubecks Ivanhoe North (mine under rehabilitation) Kilometers Charbon (95%) Airly Angus Place (50%) Clarence (85%) WESTERN OPERATIONS Open-cut mine Underground mine Project Power station Port Road Rail Note: Centennial equity ownership 100% unless shown in brackets MAP OF MAIN OPERATIONS Springvale (50%) NORTHERN OPERATIONS Newstan Lochiel (development project) Awaba Mandalong Wollongong Newcastle Sydney Port Kembla (PKCT) 17.5 Mtpa (16.66%) Newcastle (NCIG) 30 Mtpa* (8.79%) Port Waratah (PWCS) Myuna 113 Mtpa* (0.60%) Mannering * Capacity expansion approved 5

6 Schematic of integrated operations and logistics Mine with ROM output 2011e in Mt Captive mine Mine project with ROM output 2015f in Mt Washery Power station with saleable coal demand in Mt Railway line Conveyor Road NORTHERN OPERATIONS NEWSTAN NEWSTAN-LOCHIEL 3.7 MYUNA NEWCASTLE (NCIG) PORT WARATAH (PWCS) Port with Centennial allocated capacity 2011e WESTERN OPERATIONS AWABA 0.8 ERARING CHARBON 1.4 AIRLY IVANHOE NORTH 0.1 NEUBECKS 0.9 ANGUS PLACE 3.0 MANDALONG 5.0 MANNERING 0.9 VALES POINT Delta Coastal 3.0 MOUNT PIPER Delta West WALLERAWANG Delta West 2.2 LIDSDALE SIDING SPRINGVALE 3.0 CLARENCE 2.2 Sydney 7.2 PORT KEMBLA (PKCT)

7 Centennial strategic plan summary 1 CONTRACT RENEWALS & EXPORT GROWTH 2 ORGANIC EXPANSION PROJECTS A$/t Thermal export price Export price parity concept Max export parity price Domestic selling price Renew domestic contracts subject to terms Invest in processing, logistics and port upgrades to increase export growth potential Mtpa (ROM, equity basis) Existing domestic contracts Production from growth projects Production from existing mines 2011F 12F 13F 14F 15F Develop Newstan- Lochiel Assess feasibility of other expansion projects and develop plans 3 PRODUCTIVITY INITIATIVES 4 GOVERNANCE INTEGRATION WITH BANPU Clarence FCT FCT* productivity improvements at Clarence Longwall improvements at Mandalong Possible productivity enhancements also at Springvale and Mannering David Moult CEO Steve Bracken COO Succession plan: new CEO and COO Reporting lines and integration focus: Finance, HR, Strategic Planning Ensure corporate governance and HSE** consistency with Banpu * FCT = Flexible Conveyor Train ** HSE = Health Safety and Environment 7

8 Indicative production plan vs. current domestic contracts Western operations Northern operations Mtpa (equity saleable tonnage basis) 12 Mtpa (equity saleable tonnage basis) Production from growth projects 8 Production from growth projects 8 Production from existing mines 6 Production from existing mines 6 Existing domestic contracts Existing domestic contracts 2011F 12F 13F 14F 15F F 12F 13F 14F 15F Source: Banpu Indicative only 8

9 Indicative commercial strategy Export price parity concept A$/t Thermal export price Tangible export related costs Inland transportation Port Washing Logistics and washing costs 2010: c. A$30-35/t Maximum export parity price Potential additional discount reflecting export risks and additional infrastructure, etc. Intangible factors Domestic selling price* Centennial prepared to renew domestic contracts subject to acceptable pricing and terms New domestic contracts may be shorter duration than current contracts Centennial base case anticipates a medium term balance between domestic (40-50%) and export sales (50-60%) Banpu s Marketing & Logistics team will provide synergistic support to Centennial s export strategy ILLUSTRATIVE AND CONCEPTUAL ONLY * Note: for higher tonnage Source: Morgan Stanley Research 16 June 2010 on Centennial Coal, Target s Statement, Banpu 9

10 Port infrastructure development Newcastle port and rail capacity (FY F) Port Kembla port (PKCT) and rail capacity (FY F) Mt 250 Rail capacity 200 NCIG Mt PWCS Rail capacity PKCT Note: NCIG = Newcastle Coal Infrastructure Group PWCS = Port Waratah Coal Services (NB: further expansion plans being considered). PKCT = Port Kembla Coal Terminal (NB: further expansion plans being considered). Source: Wood Mackenzie 10

11 Expansion and productivity initiatives: Western operations INDICATIVE ONLY CONCEPTUAL PRE-FS FEASIBILITY STUDY UNDER CONSTRUCTION INGLENOOK NE ANGUS PLACE ORGANIC EXPANSIONS Greenfield exploration to identify and develop new mine adjacent to rail network Target ROM 2 Mtpa (UG and OP) Extension of Angus Place to new area: should extend mine life to 2039 Target ROM c. 3 Mtpa NEUBECKS Develop two new opencut mines near Mt Piper power station Target ROM c. 1 Mtpa PRODUCTIVITY SPRINGVALE Reduce time to complete Longwall moves CLARENCE Lengthen existing FCT and introduce second FCT LIDSDALE SIDING SPRINGVALE COAL HANDLING UPGRADES & EXPORT INVESTMENT Increase export capacity by 2 Mtpa ROM Could provide additional export capacity up to 8 Mtpa ROM = Under construction = FS stage = Pre-FS stage Note: size of bubbles are indicative of relative total capex investment required = Conceptual stage 11

12 Expansion and productivity initiatives: Northern operations INDICATIVE ONLY CONCEPTUAL PRE-FS FEASIBILITY STUDY UNDER CONSTRUCTION MANNERING NEWSTAN-LOCHIEL ORGANIC EXPANSIONS Assess opportunity to extend Mannering to Great Northern Seam Could increase output by 0.3 Mtpa Develop 4 Mtpa Longwall and Continuous Miner Operation All coal will require washing to produce a semi-soft coking coal and a high ash thermal coal with combined yield of 79% MANNERING MANDALONG PRODUCTIVITY Install miniwall (50 m wide) to increase output rate and lower unit cost Reduce time to complete Longwall moves Upgrade equipment UPGRADES & EXPORT INVESTMENT NEWSTAN- LOCHIEL Upgrade washery and associated rail loop Build new crushing plant PWCS/ NCIG Apply for additional port allocation as PWCS and NCIG expands Develop plan to increase Longwall development rate = Under construction = FS stage = Pre-FS stage Note: size of bubbles are indicative of relative total capex investment required = Conceptual stage 12

13 Note on operating costs and ASP Indicative average mining costs A$/t 45 Average total operating costs in 2010 were approx A$ 57.2/t (including distribution, selling and royalties) Depreciation Cash overhead Coal handling & preparation As exports grow, average operating costs will increase (but ASP will also increase) General expense Repair & maintenance Stores & supplies ASP in 2010 was A$ 63.3/t Saleable output in 2010 (equity basis): 13.8 Mt Labor Saleable output 2010: 68% domestic, 32% export Export forecast: 2011 c.35%; 2012: c.40% 13

14 Five-year indicative discretionary capex plan ( ) Springvale Mandalong Neubecks Clarence NE NE Angus Place Place A$589M* Newstan-Lochiel** Lochiel * Estimated present value of 5-year capex. ** Newstan washery and associated infrastructure capex is included. Note: Capex estimates are illustrative only and are subject to revision. Capex estimates do not include maintenance capex (average A$10/tonne). 14

15 Resource conversion to reserves Existing reserves at end December 2010 (100% basis) Inglenook (exploration) Ivanhoe North 2 Mt (mine under rehabilitation) Charbon 7 Mt Neubecks 18 Mt Airly 34 Mt Angus Place 25 Mt Springvale 63 Mt Newstan 11 Mt Newcastle Newstan Lochiel 46 Mt Awaba 1 Mt Mandalong 88 Mt Myuna 17 Mt Mannering 9 Mt Indicative only Newcastle (NCIG) 30 Mtpa* (8.79%) Port Waratah 113 Mtpa (0%) Over the next 5-10 years Centennial will work to convert over 150 Mt resources to reserves Mines with potential for reserves expansion include: Airly, Angus Place, Mannering and Myuna Existing reserves Clarence 47 Mt Mines with potential new reserves generation Kilometers Sydney Wollongong Port Kembla (PKCT) 17.5 Mtpa (16.66%) While it may be possible to prove up and classify additional reserves within the next 5-10 years, cash benefits will not flow until end of mine life (new reserves will effectively extend mines) 15

16 2. Coal divisions 16

17 2. Coal divisions (a) (b) (c) Australia coal Indonesia coal China coal 17

18 Australia coal Inglenook Ivanhoe North WESTERN OPERATIONS Neubecks Charbon Airly Clarence Open-cut mine Underground mine Project Power station Port Road Rail Note: Centennial equity ownership 100% unless shown in brackets Angus Place Springvale Newstan Lochiel (development project) Awaba Mandalong Wollongong NORTHERN OPERATIONS Sydney Port Kembla (PKCT) Newcastle Newcastle (NCIG) Port Waratah (PWCS) Myuna Mannering ROM output (equity basis) : 1Q11 : 3.55 Mt Key operation and project updates: Mandalong: Longwall was relocated in March, to recommence mid-april Springvale: Longwall relocation was completed earlier than planned. New panel is shorter in response to mining constraints Clarence: New FCT demonstrated improved availability and consistent performance Newstan Lochiel: Analyzing preferred mining plans 18

19 Australia coal in 1Q11 (equity basis) CENTENNIAL ROM Output (Mt) Sales (Mt) Revenue (AUD m) Export / Domestic (Mt) Western Operations Airly (100%) Angus Place (50%) Charbon (95%) Export Clarence (85%) Springvale (50%) 4Q10 1Q11 4Q10 1Q11 Northern Operations Awaba (100%) Domestic Newstan (100%) Mandalong (100%) Mannering (100%) Myuna (100%) 4Q10 1Q11 4Q10 1Q11 4Q10 1Q11 4Q10 1Q11 19

20 4. Coal divisions (a) (b) (c) Australia coal Indonesia coal China coal 20

21 Indonesian coal operations in 2011 ITM OPERATIONS & PROJECTS (2011 saleable output) Central Kalimantan TRUBAINDO 7.3 Mt East Kalimantan INDOMINCO 15.0 Mt Bunyut Port BHARINTO 0.2 Mt Balikpapan KITADIN TANDUNG MAYANG 0.5 Mt Samarinda Bontang Coal Terminal Captive coalfired power project KITADIN- EMBALUT 1.0 Mt Coal output : 1Q11 : 5.4 Mt 2011e : 25 Mt Project updates: Bharinto : Crushing plant construction is continued with overall progress of 95% and estimated completion by May 11 POWER Palangkaraya Operation Project South Kalimantan Banjarmasin JORONG 1.0 Mt Tandung Mayang : Already obtained all necessary permit to mine at its own mining area COAL Operation Project Jorong Port 21

22 Indonesian quarterly output and SR analysis STRIP RATIO (bcm/t) STRIP RATIO (bcm/t) STRIP RATIO (bcm/t) STRIP RATIO (bcm/t) W Block E Block Q10 3Q10 4Q10 1Q11 2Q10 3Q10 4Q10 1Q11 2Q10 3Q10 4Q10 1Q11 2Q10 3Q10 4Q10 1Q11 3.6Mt 1.1 COAL OUTPUT (Mt) 3.5Mt 3.6Mt Mt 3.1Mt 1.8 COAL OUTPUT (Mt) COAL OUTPUT (Mt) COAL OUTPUT (Mt) Mt 1.5Mt 1.5Mt 1.3Mt 1.8Mt 0.0Mt 0.1Mt 0.4Mt 0.3Mt 0.3Mt 0.3Mt 0.3Mt 0.2Mt 0.3Mt 0.3Mt 2Q10 3Q10 4Q10 1Q11 2Q11e Indominco-Bontang 2Q10 3Q10 4Q10 1Q11 2Q11e Trubaindo 2Q10 3Q10 4Q10 1Q11 2Q11e Jorong 2Q10 3Q10 4Q10 1Q11 2Q11e Kitadin - Embalut CV: kcal/kg CV: kcal/kg CV: 5300 kcal/kg CV: 5750 kcal/kg W Block is mining at a smaller pit area Additional contractor was added to support 2011 production Expect flat production due to limited reserves Start mining in difficult area so variation in SR is expected West block East block Note: output figures are saleable coal 22

23 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Banpu average selling prices in 3Q10 Banpu average selling prices in 1Q11 USD/tonne Monthly BJI Quarterly BJI Monthly ASP Quarterly ASP ASP vs. spot BJI trend shows a mix of pricing (LT/MT/ST) Despite increases in product margins, the increase in lower CV tonnages hampers ASP increases ASP 1Q11 $87.4 (+13% QoQ) Still, higher CV coal has increased relative to index, JPU or spot price BJI* May 5, 2011 $

24 Indicative 2011 coal sales Coal Coal sales sales contract contract and and pricing pricing status status Comment Contract Status Price Status 95% 100% 5% Uncontracted Contracted Fixed 62% 14% 24% Unpriced As of 10 May 2011 TARGET SALES 2011: C. 25 Mt Index Sales target remains at 25 Mt, assuming normal seasonal weather in Indonesia Close to fully sold by 1H as more contract settlements expected in 2Q Remaining unsold; anticipating stronger market price for low grade products 24

25 Coal sales by geographic destination (ITM and Thai) Indonesia coal sales by destination 1Q11 (5.4 Mt) 1.3 Mt ITALY 1.4Mt 2011 CHINA 5.1Mt 2011 HONG KONG 1.3Mt 1.2 Mt S.KOREA JAPAN Mt 4.2Mt 1.8Mt 0.5Mt Q11 2.6Mt 0.1Mt Q11 0.6Mt 0.3Mt 1.5Mt 2.2Mt INDIA Mt Q Q11 0.9Mt 0.6Mt Q11 2.6Mt TAIWAN 2.5Mt Q11 OTHERS* 0.9Mt 1.1Mt 0.1Mt Q11 *Includes small, nonregular purchasers THAILAND INDONESIA Mt 1.6Mt 1.3Mt 0.7Mt 0.4Mt 0.2Mt PHILIPPINES 1.8Mt 1.1Mt 0.3Mt Mt Q11 Mid-to-High CV Low-to-Mid CV 2011 trend expectation Q Q Q11 25

26 4. Coal divisions (a) (b) (c) Australia coal Indonesia coal China coal 26

27 China coal operations BANPU CHINA 2011 COAL PRODUCTION TARGETS* PRICE vs. COST (RMB/ t) PRICE vs. COST (RMB/ t) Gaohe (45%), Shanxi 6 Mt ** Daning (56%), Shanxi BEIJING Mt 0.61Mt 2, Q10 4Q10 1Q11 AVERAGE COAL PRICE PRODUCTION COST COAL OUTPUT (Mt ROM) Q10 4Q10 1Q11 AVERAGE COAL PRICE PRODUCTION COST COAL OUTPUT (Mt ROM) 0.39Mt 0.35Mt 0.34Mt 0.34Mt Hebi (40%), Henan 1.5 Mt n.a. 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 2Q11e POWER COAL Operation Project Operation Project * ROM production ** Divestment of 56% in Daning on 11 March 2011 Daning CV: Kcal/kg Banpu 56% No production in 1Q 11 Divestment SAADEC on Mar 11 Hebi Zhong Tai Mining CV: Kcal/kg Banpu 40% Low ASP due to HZTM has sold raw coal at 480 RMB since January 27

28 China coal project: Gaohe Gaohe will produce and sell 1.5 Mt of coal in 2011 (trial production) Obtained approval from Zheng Zhou Railway Bureau for the Gaohe railway spur Second set of long-wall equipment delivered to Gaohe mine site To obtain production license in 1H

29 3. Coal market 29

30 Main 2011 coal market driver update Weather Chinese Demand World Growth Indonesia wet season was normal, what will dry season be like? Chinese winter was normal but with water shortages, what will summer and end year winter be like? Australian storms/floods damage recovering slowly Demand is strong and resilient above expectations Grid transmission/generation infrastructure may cap effective demand Statistics are contradictory in terms of consistency in quality as well as supply ability vs. demand Imports still strong in 2011 and should exceed 2010 levels for thermal coal World growth forecast 3.1%, Asian growth forecast 5.1% If unemployment concern defers interest rate rises, there is potential for demand lift in 2H 2011 But oil, food and raw material cost will have a gradual impact Japanese effect Oil/gas effect Sources: Country Forecast February and March 2011 from The Economist Intelligence Unit Limited

31 Japan earthquake impact on coal demand in 2011 Estimated change in demand vs. expectation (Mt) INDICATIVE ONLY 1H H 2011 Total NE Japan Make-up in transferred power Western Japan + Hokkaido Cement industry Steel industry Total coal demand from Japan* Extra European coal demand in 2011** * Assumes no major nuclear radiation fall out to wide areas ** Impact from Japanese nuclear fears and oil/gas price increase resulting from the political instability in the Middle East and North Africa Source: Banpu M&L estimates 31

32 US$ / tonne Banpu average selling prices in 3Q10 Thermal coal benchmark prices Coal price benchmarks FOB Richards Bay 6000 kcal/kg, NAR FOB Newcastle 6300 kcal/kg, GAR FOB Kalimantan 5900 kcal/kg, GAR FOB Kalimantan 5000 kcal/kg, GAR Newcastle, RB, Coal prices merge Upswing due largely to : Carry over impacts of rain and accidents Oil and gas price rises Strong Asian growth Fall out in Europe due to Japanese nuclear problem Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Increased production and waiting for demand lift to India/China and domestic demand Forecasts: depends on weather and China 32

33 China thermal coal market review China thermal coal market review China domestic coal prices China thermal coal imports and exports Datong super mixed coal (6,000 kcal/kg) End Mar 11 9 May 11 Shanxi super mixed coal (5,500 kcal/kg) (RMB) (RMB) Datong Common mixed coal (4,000 kcal/kg) Shanxi Common RMB 1, Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11e Mt Net import 79 Mt Net import c. 92 Mt Outlook Import Export Source: 9 May 2011 Sources: China Coal Report February 2011, MS&L Estimates 33

34 4. Power division 34

35 Thailand power : BLCP in 1Q11 (100% basis) Bt. million Q-Q: 70% Y-Y: -11% 2,482 2,215 Q-Q: 414% Y-Y: -47% Q-Q: 63% Y-Y: -8% 5,022 4,640 1,305 2,843 1Q10 4Q10 1Q11 Availability Payment (AP) 997 1Q10 4Q10 1Q11 Total revenue Q-Q: 68% Y-Y: - 7% FX gain 172 Q-Q: 349% Y-Y: -23% 2,312 1,281 2, , ,547 1Q10 4Q10 1Q11 Energy Payment (EP) Q10 4Q10 1Q11 EBIT 97% 87% 95% FX loss Q-Q: 143% Y-Y: -18% 2,498 2,052 1Q10 4Q10 1Q Equity income* 1Q10 4Q10 1Q11 Dispatch (%) * Based on Banpu s 50% interest 1Q10 4Q10 1Q11 EBITDA 35

36 Thailand power: Hongsa project in Laos 1,800 MW mine-mouth lignite-fired power plant project Power plant area: site leveling (pre-construction work) Mar-2011 COD targeted in 2015 Partnership between Banpu (40%), Ratch (40%) and Lao government (20%) Resettlement: home construction and temporary electricity Community development: local poultry raising O&M Agreement with EGAT signed on 23 February 2011 NTP for power plant EPC issued on 1 March 2011 Overall project progress is on schedule 36

37 China power in 1Q11 BIC 1Q10 4Q10 1Q11 Sales* (USD m) EBITDA (USD m) Utilization (hours) Power tariff (RMB/kwh) Coal price** (RMB/t) Luannan Hebei Province Power 100MW; Steam 128tph (Banpu 100% ) Higher sales both power and seasonal heat sold helped improve EBITDA ,033 2,156 1, Zhengding Hebei Province Power 48MW; Steam 180tph Higher sales both power and seasonal heat sold helped improved EBITDA ,224 2,072 2, (100%) Zouping Shandong Province Power 100MW; Steam 430tph (70%) High coal price and plant scheduled maintenance reduced EBITDA in Q ,557 2,159 1, Note: 100% basis, * Unaudited figures, ** Including transportation 37

38 5. Financial summary 38

39 CORPORATE EVENTS EXTERNAL EVENTS Key events Capital market flows back to US Instability in the Middle East and North Africa Earthquake in Japan Flooding in Southern Thailand BoT raises interest rate 0.25% January February March April 3 March 11 March 4 Jan Announcement of license expiry at Daning 23 Feb Banpu FY10 results, dividend and Reserves & Resources update 23 Feb Announcement of 2H10 Bt 8 dividend to be paid on 29 Apr 2011 FY10 Analyst Meeting 8 March Divested 56% in Daning Acquired 12.39% in Hunnu 4 April Annual General Meeting 1 April Issue $500M equivalent of THB bond 39

40 Banpu in 1Q 2011 COAL SALES 9.07 Mt Unit: Bt. million Down 0.3 Mt 3% Q-Q Coal Power Total Y-Y Q-Q Revenue 22,751 1,427 24,178 59% 12% Equity income % -4% EBIT 4, ,855-1% 57% Net income 8, , % 86% 40

41 Sales revenues Bt. million USD 791 m USD 463 m 15,251 1,423 USD 717m 21,507 1,391 6, % Q Q +59% Y Y 24,178 1,427 8,145 Power +3% Q Q 0% Y - Y Coal Australia +25% Q- Q Power Coal Australia Coal Indonesia 13,828 13,618 14,606 Coal Indonesia +7% Q Q +6% Y - Y 23% increase in sales volume 8% appreciation of Thai Baht 1Q10 4Q10 1Q11 Note: USD exchange rate is the average exchange rate of the corresponding period, Revenue from other is included in Coal. 41

42 Coal gross margin 1Q11 : 42% Bt. million 8,254 8,700 Coal sales Average Indonesia coal business gross margin: 47% Bt. million 8,166 8,145 6,498 4,614 3,996 3,948 Gross Margin (%) 42% 33% 45% 51% 49% 53% % 38% % 28% 30% 49% 21% 45% 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 4Q10 1Q11 Indominco Trubaindo Jorong Kitadin Centennial 42

43 EBITDA and NPAT EBITDA Net Profit after Tax Bt. million 5, % Q Q +16% Y Y 4,914 6, Power +2,134% Q-Q -64% Y-Y Bt. million +86% Q Q +237% Y Y 9, ,176 Power -91% Q-Q -74% Y-Y Coal - Australia +198% Q-Q 1, ,577 2,145 Coal - Australia +36% Q-Q 4,923 Coal - Indonesia 3,872 3,311 3,585 Coal - Indonesia +8% Q-Q -7% Y-Y 2,717 1,265 3,818 7, % Q-Q +427% Y-Y 1, Q10 4Q10 1Q11 1Q10 4Q10 1Q11 Power Coal Australia Coal Indonesia 43

44 Balance sheet Net D/E (X) Debt structure Net gearing (%) THB Fixed 11% % 50% 40% % % 14% Q11 THB Float 20% Fixed 11% AUD Float 13% USD Fixed 2% USD Float 54% * Net gearing = ND / (ND+E) As at end of March

45 Appendices 45

46 Operating profit Units: Bt. million 1Q11 4Q10 1Q10 QoQ% YoY% Total sales revenues* Sales revenues Coal 22,751 20,115 13,828 13% 65% Sales revenues Power (BIC) 1,427 1,392 1,423 3% 0% Cost of sales (14,069) Gross profit* 10,110 7,230 6,492 40% 56% GPM 42% Note: * Including other business 24,178 21,507 15,251 12% 59% Gross profit - Coal 9,870 7,066 6,125 40% 61% Gross profit Power (BIC) % -33% GPM - Coal 43% GPM Power (BIC) 16% (14,277) 34% 35% 15% (8,759) 43% 45% 24% 46

47 Operating profit Units: Bt. million 1Q11 4Q10 1Q10 QoQ% YoY% Gross profit 10,110 7,230 6,492 40% 56% GPM 42% 34% 43% SG&A (3,358) (2,770) (1,515) Royalty (2,305) (2,066) (1,647) Income from associates ,042 Dividend income Coal & Power Other income Other expenses - Operations (254) (190) (778) EBIT 4,855 3,101 4,915 57% -1% EBIT - Coal 4,378 3,194 3,452 37% 27% EBIT - Power 477 (93) 1,463 na. -67% EBITDA 6,300 4,914 5,435 28% 16% EBITDA - Coal 5,730 4,888 3,872 17% 48% EBITDA - Power ,562 2,134% -64% 47

48 Net profit Units: Bt. million 1Q11 4Q10 1Q10 QoQ% YoY% EBIT Interest expenses (700) Financial expenses (71) Income tax (core business) (1,247) Minorities (810) Net profit before extra items 2,027 Non-recurring items* 8,058 3,586 (117) Income tax (non- core business) (1,941) - - Net profit before FX 8,144 4,620 3,083 76% 164% FX translations 1,019 Net profit 9,163 4,923 2,717 86% 237% EPS (Bt/share) Note: * Income from non-core assets and other non-operating expenses 4,855 3,101 4,915 57% -1% (719) (126) (754) (467) 1, (272) (52) (864) (527) 3,201 (366) % -97% 48

49 Key Centennial assets WESTERN OPERATIONS NORTHERN OPERATIONS Coal specifications Centennial (avg. of all coal output) Asian benchmark Inglenook (95%) (exploration area) Neubecks (50%) Ivanhoe (100%) (mine under rehabilitation) Charbon* (95%) Airly (100%) 0.1 Mtpa Angus Place (50%) 1.7 Mtpa Springvale (100%) 1.6 Mtpa Newstan Lochiel (100%) Awaba (100%) 0.9 Mtpa Mandalong (100%) 5.3 Mtpa Newcastle Myuna* (100%) Newcastle (NCIG) 30 Mtpa (8.79%) Mannering* (100%) * Total of 2.1Mtpa Gross Calorific Value (air dried basis) Total Sulphur (air dried basis) % 0.70% % Clarence* (85%) 0% *Charbon and Clarence 2.4Mtpa Open-cut mine Underground mine Project Power station Sydney Ash (air dried basis) 16% 7% 20% 0% Port Road Rail Note: Centennial equity ownership 100% unless shown in brackets Kilometers Wollongong Port Kembla (PKCT) 15 Mtpa (16.66%) Total Moisture (as received) 9% 12% 30% 0% Disclaimer: This document contains information relating to Centennial Coal Company Limited, which has been derived from publicly available sources and has not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of such information. 49

50 Centennial indicative production plan vs. current domestic contracts Western operations Northern operations Mtpa (ROM, 100% basis) 14 Mtpa (ROM, 100% basis) Production from growth projects Production from existing mines 8 Production from existing mines Production from growth projects Existing domestic contracts 4 2 Existing domestic contracts F 12F 13F 14F 15F F 12F 13F 14F 15F Source: Banpu Indicative only 50

51 Centennial production profile (equity basis) ROM Coal Production Financial year ending 31 th Dec Mt Development coal Development coal Development coal Neubecks Newstan-Lochiel Airly Existing operations e 2012e 2013e 2014e 2015e Source: Banpu 51

52 Centennial sales by destination (equity basis) Mt Korea 1.0 Taiwan 1.5 Japan 1.5 Sales mix Export 31% Domestic 69% Others 0.4 Domestic 9.7 Note : Based on 2009 Sale Source: Centennial 52

53 Centennial coal characteristics by mine Northern operations Mine Primary destination Pre-wash ash % Post-wash ash % Yield Springvale Export 21 % % 85 % Angus Place Domestic** 21 % % 85 % Clarence Export % % 92 % Charbon Export % % % Airly Export % Not applicable 100 % Western operations Mandalong* Export % % 90 % Newstan Lochiel To be determined 30 %+ 26% thermal + 9% semi-soft 23% thermal + 9% semi-soft up to 30% domestic only 19% export thermal only 83 % 79 % up to 92 % 79 % Mannering Domestic % Not applicable 100 % Myuna Domestic % Not applicable 100 % * Mandalong could crush up to 2 Mtpa and send it straight to export without washing or price discounting ** Is not currently exported Source: Value driver model; 5-year Plan; Newstan-Lochiel Pre-feasibility study 53

54 Thermal Thermal coal market coal market analysis analysis 1Q Q 2010 update update ATLANTIC Increased demand due to cold winter. Gas competes RUSSIA Minor recovery due weakened Ruble but rising domestic demand and rail limits CHINA Q1 Import rate eased due to slow return of industry, warm winter in the south and import price relatively high EAST ASIA Japan minor recovery, but steel mills strong still; Korea andtaiwan strong recovery USA Thermal supply remains very low, some LCV to Korea / China REST OF ASIA Continued growth COLOMBIA Rains lower production. Export to Asia stop INDONESIA Rain in 1Q, but not excessive SOUTH AFRICA Continuing problems in rail eases short term. Diverted shipments to N.Asia from China distort expectation INDIA Under recovery, Buyers hoping prices ease AUSTRALIA Floods hamper Queensland output, loss approx. 4-5 Mt thermal = Demand = Demand/Supply = Supply 54